Australian Government farm business lender RIC (Regional Investment Corporation) is providing low interest loans for dairy farmers nationally. RIC loans enable farm businesses to manage through drought in southern Australia and recover from flooding in northern New South Wales and Queensland.
What is a RIC loan?
A RIC low-interest loan is for farmers facing tough financial times helping to improve cash flow and gain financial breathing space to be able to manage through, recover and prepare. RIC loans enable farm businesses to refinance up to 50 per cent of their existing commercial debt or take on new debt up to $2 million with a low interest rate.
RIC loan benefits
The additional benefits of interest only payments for the first five years of a 10-year loan term and variable interest rates only reviewed twice a year provides greater certainty and peace of mind until farmers get back on their feet. RIC estimates on an average $1 million loan, RIC customers may save between $20,000 to $30,000 in interest repayments annually where there is a 2 - 3 per cent interest rate concession compared to a commercial loan. This additional cash flow is valuable in tough financial times to pay bills, buy feed and water and make the farm business more efficient.
RIC loans to dairy farmers
Since RIC began on 1 July 2018, it has settled 188 loans valued at over $199 million for dairy farmers nationally as at 31 May 2025. Of these loans, 47 are in New South Wales valued at over $49 million and 109 loans for Victorian dairy farmers valued at over $119 million. Dairy farmers account for more than 1 in 4 of the total 388 RIC loans settled in Victoria as at 31 May 2025.
How long does it take to get a RIC loan?
RIC aims to approve or decline a new application within 50 days. Once the decision has been made the time to settlement will vary depending on the complexity of an application and individual circumstances. RIC works with applicants, commercial lenders and trusted advisers such as accountants to settle loans as quickly as possible.
For more RIC loan information
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